Chuy’s Holdings, Inc. Announces Second Quarter 2013 Financial Results

Chuy’s Holdings, Inc. (NASDAQ:CHUY) today announced financial results
for the second quarter ended June 30, 2013.

The following definitions apply to these terms as used in this release:

Comparable restaurant sales reflect changes in sales for the comparable group of restaurants over a specified period of time. We consider a restaurant to be comparable in the first full quarter following the 18th month of operations. Changes in comparable sales reflect changes in customer count trends as well as changes in average check.

Average check is calculated by dividing revenue by total entrées sold for a given time period. Average check reflects menu price influences as well as changes in menu mix.

Conference Call

The Company will host a conference call to discuss financial results for the second quarter of 2013 today at 5:00 Eastern Standard Time. Steve Hislop, President and Chief Executive Officer, and Jon Howie, Vice President and Chief Financial Officer will host the call.

The conference call can be accessed live over the phone by dialing 888-820-9416 or for international callers by dialing 913-312-0943. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176 or 858-384-5517 for international callers; the passcode is 9607723. The replay will be available until August 13, 2013. The conference call will also be webcast live from the Company’s website at www.chuys.com under the investor relations section. An archive of the webcast will also be available through the corporate website shortly after the call has concluded.

About Chuy’s

Founded in Austin, Texas in 1982, Chuy’s owns and operates 45 full-service restaurants across twelve states serving a distinct menu of authentic, made from scratch Tex Mex inspired dishes. Chuy’s highly flavorful and freshly prepared fare is served in a fun, eclectic and irreverent atmosphere, while each location offers a unique, “unchained” look and feel, as expressed by the concept’s motto “If you’ve seen one Chuy’s, you’ve seen one Chuy’s!”. For further information about Chuy’s, including the nearest location, visit the Chuy’s website at www.chuys.com.

Forward-Looking Statements

Certain statements in this release that are not historical facts, including, without limitation, those relating to our anticipated financial performance, are forward-looking statements that involve risks and uncertainties.Such statements are based upon the current beliefs and expectations of the management of the Company.Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the actual number of restaurant openings, the sales at the Company’s restaurants, changes in restaurant development or operating costs, such as food and labor, the Company’s ability to leverage its existing management and infrastructure, changes in restaurant pre-opening expense, general and administrative expenses, capital expenditures, or our effective tax rate, changes in the number of diluted shares outstanding, strength of consumer spending, conditions beyond the Company’s control such as weather, natural disasters, disease outbreaks, epidemics or pandemics impacting the Company’s customers or food supplies, acts of war or terrorism and other factors disclosed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission.Investors should take such risks into account when making investment decisions.Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.The Company undertakes no obligation to update any forward-looking statements, except as required by law.

Chuy’s Holdings, Inc. and Subsidiaries

Unaudited Condensed Consolidated Income Statements

(In thousands, except share and per share data)

Thirteen Weeks Ended

Twenty-Six Weeks Ended

June 30,2013

June 24,2012

June 30,2013

June 24,2012

Revenue

$

53,427

$

43,545

$

100,125

$

81,021

Costs and expenses:

Cost of sales

14,644

11,622

27,201

21,570

Labor

16,740

13,740

31,715

25,683

Operating

7,537

6,069

14,084

11,321

Occupancy

3,108

2,530

5,999

4,810

General and administrative

2,507

2,137

5,302

3,922

Advisory agreement termination fee

—

—

—

2,000

Secondary offering costs

508

—

925

—

Marketing

402

326

754

609

Restaurant pre-opening

1,050

1,224

2,021

1,980

Depreciation and amortization

2,126

1,543

4,094

2,947

Total costs and expenses

48,622

39,191

92,095

74,842

Income from operations

4,805

4,354

8,030

6,179

Interest expense

24

1,884

57

3,166

Income before income taxes

4,781

2,470

7,973

3,013

Income tax expense

1,621

739

2,172

902

Net income

3,160

1,731

5,801

2,111

Undistributed earnings allocated to participating interests

—

1,700

—

2,079

Net income available to common stockholders

$

3,160

$

31

$

5,801

$

32

Net income per common share:

Basic

$

0.19

$

0.16

$

0.36

$

0.16

Diluted

$

0.19

$

0.15

$

0.35

$

0.15

Weighted-average shares outstanding:

Basic

16,269,243

194,766

16,190,264

201,634

Diluted

16,677,221

9,538,093

16,626,012

10,219,778

Chuy’s Holdings, Inc. and Subsidiaries

Selected Balance Sheet Data

(In thousands)

June 30,2013

December 30,

2012

Cash and cash equivalents

$

3,770

$

5,855

Total assets

141,381

129,721

Long-term debt

4,500

5,000

Total stockholders’ equity

94,658

87,463

Reconciliation of Non-GAAP Measures

We prepare our financial statements in accordance with generally accepted accounting principles (GAAP). Within our press release, we make reference to non-GAAP restaurant-level EBITDA, restaurant-level EBITDA margin, and pro forma net income. Restaurant-level EBITDA represents net income plus the sum of general and administrative expenses, the advisory agreement termination fee, secondary offering costs, restaurant pre-opening costs, depreciation and amortization, interest and taxes. Restaurant-level EBITDA is presented because: (i) the Company believes it is a useful measure for investors to assess the operating performance of our business without the effect of non-cash depreciation and amortization expenses; and (ii) the Company uses restaurant-level EBITDA internally as a benchmark to evaluate its operating performance or compare our performance to that of our competitors. Additionally, the Company presents restaurant-level EBITDA because it excludes the impact of general and administrative expenses, which are not incurred at the restaurant level, and restaurant pre-opening costs, which are non-recurring at the restaurant level. The use of restaurant-level EBITDA thereby enables the Company and its investors to compare operating performance between periods and to compare our operating performance to the performance of the Company’s competitors. The measure is also widely used within the restaurant industry to evaluate restaurant level productivity, efficiency and performance. The use of restaurant-level EBITDA as a performance measure permits a comparative assessment of our operating performance relative to our performance based on our GAAP results, while isolating the effects of some items that vary from period to period without any correlation to core operating performance or that vary widely among similar companies. The Company presents restaurant-level EBITDA margin for the same reasons it presents restaurant-level EBITDA.